California Cannabis Sales Bring in Almost $248 Million in Tax Revenue for First Quarter 2026

WHAT YOU NEED TO KNOW: Cannabis retailers sent nearly $248 million in tax revenue to the State of California in the first quarter of 2026. Since January 2018, California cannabis sales have generated more than $8.1 billion in tax revenue. The cannabis excise tax, which accounts for more than half the revenue from retailers' quarterly returns, supports programs for childcare and early childhood development, medical research, youth substance abuse prevention, environmental recovery, and more.

Sacramento — California's legal cannabis sales have generated about $248 million in tax revenue for the State in the first quarter of 2026. The California Department of Tax and Fee Administration (CDTFA) today reported that, as of May 18, it has collected $143.6 million in cannabis excise tax and $104.3 million in sales tax from cannabis retailers' first-quarter returns. These figures do not include outstanding returns or those still being processed.

Reported revenue for fourth-quarter 2025 returns has been revised to $257.6 million, up from $255.1 million. This includes $146.3 million in cannabis excise tax and $111.3 million in sales tax. These revisions are a result of amended and late returns, as well as other tax return adjustments.

Since January 2018, cannabis sales have generated more than $8.1 billion in tax revenue, including $4.34 billion in cannabis excise tax and more than $3.28 billion in sales tax. This also includes $500.6 million in cultivation tax collected through July 1, 2022, when the cultivation tax was eliminated.

Retailers must collect the cannabis excise tax from buyers based on gross receipts from sales of cannabis or cannabis products. Sales tax is applied to the price after the cannabis excise tax has been added.

Additional cannabis tax revenue data is available on the CDTFA Open Data Portal. To learn more about cannabis taxes in general, visit the Tax Guide for Cannabis Businesses on the CDTFA website.

The California Department of Tax and Fee Administration (CDTFA) administers California's sales and use, fuel, tobacco, alcohol, and cannabis taxes, as well as other taxes and fees that fund specific state programs. CDTFA-administered programs accounted for more than $97.8 billion last fiscal year, supporting essential local services such as transportation, public safety and health, libraries, schools, social services, and natural resource management programs through the distribution of tax dollars going directly to local communities.